ZimVie Inc (ZIMV) Reports Q3 2023 Financial Results and Updates Annual Guidance
ZimVie Inc (NASDAQ:ZIMV) reports a decrease in third quarter net sales by 4.9% to $202.9 million.
The company records a net loss of $5.1 million for Q3 2023.
Adjusted EBITDA for Q3 2023 stands at $25.8 million, a decrease of $3.6 million from Q3 2022.
ZimVie Inc (NASDAQ:ZIMV) updates its full year 2023 financial guidance.
On November 1, 2023, ZimVie Inc (NASDAQ:ZIMV), a global leader in the dental and spine markets, released its financial results for the third quarter ended September 30, 2023. The company reported a decrease in third party net sales by 4.9% to $202.9 million compared to the same period in 2022. The net loss for Q3 2023 was $5.1 million, a change of $5.9 million compared to net income of $0.8 million in Q3 2022.
Financial Performance
Third party dental sales of $105.3 million grew 0.2% on a reported basis and declined 1.2% on a constant currency basis. This was primarily driven by one less selling day in Q3 2023 versus Q3 2022, impacting global dental sales by 1.6%. Third party spine sales of $97.6 million decreased by $10.6 million, or 9.8% on a reported basis and 8.9% on a constant currency basis. This decrease was primarily due to competitive pressures, lower net sales due to the company's exit of spine products activities in China, and one less selling day impacting global spine sales by 1.4%.
The increase in net loss was primarily due to lower net sales and higher cost of products sold in the spine products category due to the release of a spin-related contingent liability in the prior year. This was partially offset by operating expense savings in the dental and spine product categories from the announced restructuring and other cost reduction initiatives.
Adjusted Financial Metrics
Adjusted net income for Q3 2023 was $2.2 million, a decrease of $10.7 million compared to the same period in the previous year. Basic and diluted EPS were ($0.19) and adjusted diluted EPS was $0.08 for Q3 2023. Adjusted EBITDA for Q3 2023 was $25.8 million, or 12.7% of third party net sales, a decrease of $3.6 million and 110 basis points, respectively, from Q3 2022. This was primarily driven by lower net sales and higher cost of products sold, partially offset by restructuring-related operating expense savings.
2023 Financial Guidance
ZimVie Inc (NASDAQ:ZIMV) also provided an update to its annual guidance for the year ending December 31, 2023. The company now projects net sales to be between $860 million and $870 million, and adjusted EBITDA margin to be between 13.5% and 14.0%. Adjusted EPS is expected to be between $0.60 and $0.70.
Balance Sheet Overview
As of the end of Q3 2023, ZimVie Inc (NASDAQ:ZIMV) had cash and cash equivalents of $75.4 million. The company's total assets stood at $1.5 billion, while total liabilities were $797.7 million. Total stockholders' equity was $710.2 million.
The company's financial results reflect its ongoing efforts to improve operating efficiency and increase its cash position. Despite the challenges faced in the third quarter, ZimVie Inc (NASDAQ:ZIMV) remains committed to its innovation platform and continues to reshape its portfolio to penetrate markets with the best long-term growth potential.
Explore the complete 8-K earnings release (here) from ZimVie Inc for further details.
This article first appeared on GuruFocus.
